Here’s what you need to do in Apple (AAPL) and Skyworks Solutions (SWKS). (September 19, 2016)
AAPL SWKS AAPL
Sell Apple ( NASDAQ:AAPL ), that’s the point here. In this video we are going to look at Apple ( NASDAQ:AAPL ) and Skyworks ( NASDAQ:SWKS ). And this is the deal: If you just look at this in this framework here, the stock has been trending lower but that downtrend has been broken, right? But you still can’t look at this as being just an awesome breakout move for Apple ( NASDAQ:AAPL ). What it is doing here is, first of all it has gone really far, really fast for a stock like Apple ( NASDAQ:AAPL ). It has run how many days in a row, four days, and then it has petered out a bit. And now if you just look at these three days, these last three days you kind of have ALMOST a complete reversal. A gap up, you can see it traded in this box here, trading in the middle, and now almost a complete reversal, pushing up against this last little support level here.
So, I am just suggesting, for a short-term trade so to speak, sell Apple ( NASDAQ:AAPL ). I am kind of hesitating here, because frankly there is nothing really tradeable about this stock. I will probably wind up buying a watch for various reasons and they are all waterproof. But I look at Skyworks Solutions ( NASDAQ:SWKS ), which trades along with Apple ( NASDAQ:AAPL ), I see it doing the same thing. These are not high momentum stocks that you just want to be in. If you are long Apple ( NASDAQ:AAPL ), seriously, and I don’t mean this in a derogatory term at all but you are an ‘Appleonian’, you love Apple ( NASDAQ:AAPL ). You are like the guys that own Tesla ( NASDAQ:TSLA ), you just LIKE Apple ( NASDAQ:AAPL ). And that is fine, but this is not the best stock for you to be in.
“Yes, but Dan back here.” Well right, if I could buy it at $12.00 again I would do it. But this stock has been correcting. It is not correcting any more, it actually looks like it has kind of come out of the correction. This is, I would say, kind of the base, right? “So why would you sell it Dan?” Well because it broke out and now it looks like it’s pulling back. I am looking at the stock and it could, especially if the market sells off on Wednesday afternoon, who the heck knows? I have no idea. I make no representations to the contrary. But if the market does have a correction Apple ( NASDAQ:AAPL ) can be 110.00, 105.00 pretty easily. And even if it pulls back to here and ultimately rebounds, what are you getting? You still have a really nice uptrend. So other folks are going to be looking at Apple ( NASDAQ:AAPL ) and saying, “Wow! Maybe I want to buy this stock.”
Meanwhile you are going to be looking at it and saying, “Why the heck didn’t I sell it when it was at 113.00 or 114.00? It had a big move in just a very few days, and this is HUGE for Apple ( NASDAQ:AAPL ) so I should have just taken profits and then waited for a better entry.” Or, more appropriately, actually waited for a better stock.” Because when it is all said and done we make money when we close a position. After we have closed the position do we really care what stock it was that we made the money on? No. My point is, that it really isn’t relevant what the ticker is. Because the only thing that matters to you is when you actually book a trade, when you take a profit, when you take the trade off of the table.
And after you have taken the trade off the table does it matter whether it was Apple ( NASDAQ:AAPL ) or AutoZone ( NYSE:AZO )? Does it matter whether it was Zillow ( NASDAQ:ZG ) or Twillio ( NYSE:TWLO )? It doesn’t matter. So you take your profits here and then you wait for a better trade, and it is probably going to come on some stock other than Apple ( NASDAQ:AAPL ). You can check out my stuff in the member’s section. All I am focusing on these days, seriously, is stock that are working. If they are not WORKING the only reason I am going to cover them in the Strategy Session is if a member requests them. That is what I do. I am going to be happy to help somebody if they have a question about a stock. But all I am focusing on are stocks that are working. This didn’t make the list.
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